In a tweet that has grabbed considerable attention in the crypto space, especially within the XRP community, Ripple, the San Francisco-based crypto outlet, might soon spread its wings to expand its payments network circle.
Taking to X on February 13, CoinDesk, a leading news cryptocurrency platform, revealed that Ripple, XRP’s primary distributor, plans to acquire the New York-based digital asset platforms Standard Custody and Trust Company.
CoinDesk wrote, “Ripple is planning to acquire crypto custodian StandardCustody, along with its New York charter. The company is trying to push beyond its payments-network business.”
It is worth mentioning that the platform highlighted above is a United States-based digital asset custody provider that could serve as an enterprise-grade regulatory outlet for digital assets.
Ripple CEO Confirms the Development
Brad Garlinghouse, Chief Executive Officer (CEO) at Ripple, took to X to confirm the report. Notably, the CEO’s reply came a few minutes after the initial tweet.
Garlinghouse’s response only described what Ripple aims to achieve with its new collaboration. He remarked, “With StandardCustody, we’ll be able to improve existing product offerings for our customers, as well as explore new products and use cases, all in a fully compliant way.”
In addition, the CEO highlighted the firm’s previous achievements, which involved securing about 40 U.S. money transmitter licenses, a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), and a Virtual Assets Service Provider (VASP) with the Central Bank of Ireland.
With @StandardCustody, we’ll be able to improve existing product offerings for our customers, as well as explore new products and use cases, all in a fully compliant way.
— Brad Garlinghouse (@bgarlinghouse) February 13, 2024
To date, @Ripple has secured: ✅ nearly 40 U.S. money transmitter licenses, ✅ MPI license from MAS, and ✅… https://t.co/0BrAWjBmhM
With the new development, there is anticipation within the XRP community on how this potential acquisition could aid the embattled digital asset to break out of its accursed shell of stagnancy.
At the time of writing, XRP is trading at $0.5253, with a relatively 1% price downtrend in the last 24 hours, according to CoinMarketCap.
Will Ripple Get The Required Approval?
Ripple’s new acquisition is still awaiting approval from the New York Department of Financial Services. Hence, it risks losing its latest collaboration, which is a big possibility because the San Francisco-based crypto outlet is currently in a legal battle with a U.S. securities watchdog.
For context, Ripple is currently engaging the United States Securities and Exchange Commission (SEC) in a court battle. The SEC filed a lawsuit against the crypto platform in December 2020, for allegedly selling XRP as a security.
After a protracted court battle that has lasted for over three years, Ripple seemed closer to winning the court case, as most significant decisions in the legal dispute seemed to be in favor of the crypto entity.
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